n this Sept. 8 photo, Hanzo the pitbull dressed as Coco Loco, left, and teamate Kalani, dressed as Diva Pinkie Lucha, bail on a wave after riding it most of the way into the beach in the Surf Dog Surf-A-Thon. ...
— Peggy Peattie

In this Sept. 23 photo, Lise Ann Strum trains with her female Belgian Malinois, Vhoebe, who is a champion dog-diving dog. Activities like these are part of the tightening bond between owners and their pets, which Petco is banking on ...
— John Gastaldo

If so, you’re part of a growing trend that San Diego retailer Petco is capitalizing on in the $56 billion animal supply industry: the humanization of our pets.

Nearly half of pooches today sleep in bed with their owners, says a recent survey by the American Pet Products Association — a statistic that would shock pet owners of yore who kept their canines outside in a doghouse.

“I don’t know how much more personal it can be,” said Petco CEO Jim Myers of the new sleeping arrangement.

But the specialty retailer knows there is money in that relationship.

Last month, Petco launched a $10 million marketing campaign, changing its “Where the Healthy Pets Go” tagline to “The Power of Together.”

Pets and their People

60 percent: The number of Americans who own pets

45 percent: The percentage of dogs who sleep with their owners

90 percent: The percentage of pet owners who consider their animal a part of the family

$56 billion: The amount that Americans are expected to spend on their pets in 2013

Sources: American Pet Products Association, Harris Interactive

“As a company, we were at a place where we really wanted to continue to evolve our brand beyond just products and services, to connect emotionally with our customers and their pets,” said Elisabeth Charles, chief marketing officer for Petco Animal Supplies.

Today’s pet people really consider themselves “pet parents,” Myers said, even going so far as to refer to themselves as “Mommy” and “Daddy” when talking to their pets.

“If you go back in our history even 30 or 40 years ago, that was not the relationship that people had with their animals,” he said.

But it is now, and that’s why Myers is leading the privately held Petco into a new frontier where stores serve animals’ needs in much the way other stores serve human consumers.

It needs to do this to stand out from Phoenix-based rival PetSmart, which is more focused on competitive pricing. Together the two companies comprise about 28 percent of the market for pet products in the United States, reports Packaged Facts.

And even though Petco is top dog in its home county of San Diego, where it has 28 stores compared with PetSmart’s 11, its national market share lags.

While Petco has landed on the National Retail Federation’s Stores Magazine list of fastest-growing retailers for the last four consecutive years, this year it was in 93rd place, behind 41st-place PetSmart.

The so-called Big Two competitors, each with about 1,200 stores nationwide, have different strategies, Packaged Facts says. Petco is pursuing a combination of premium and health-focused themes with its brand selection and new boutique Unleashed by Petco stores, while PetSmart focuses on competitive pricing and value.

But both have been pushing the humanization envelope by widening their selections of products and services, and saw close to 10 percent growth last year in an industry that averages 5 percent annual growth.

Petco has expanded its product line to encompass everything from $60 Halloween costumes and a “salad” bar where you pay for treats by the pound, to grain-free food, and it also now offers services ranging from doggy day care to veterinary care.